IT WAS a hectic day for the Greek Cypriot delegation in Copenhagen
yesterday as pressure mounted from all sides for some sort of agreement to
be reached before the end of the summit. By sunset, all the day had brought
was the end of any hopes of signing a peace deal in the Danish capital.

The day started with renewed hopes for a solution and foreign envoys
converged on President Glafcos Clerides at the Marriot hotel in an effort
to strike a last-minute deal.

Five rooms were reserved at a conference centre next to the Danish Foreign
Ministry where representatives from the Greek and Turkish Cypriot sides,
the three guarantor powers - Greece, Turkey, and Britain - as well as the
United States and the UN, struggled to find common ground.

But as time passed, hopes for striking a deal began to falter as Turkish
Cypriot leader Rauf Denktash declared early, from an Ankara hospital, that
no one could force his side to sign.

Denktash said the EU should simply not admit a divided Cyprus and wait
instead until the island was reunited after serious negotiations about
details of the UN peace plan. "You can postpone (Greek) Cyprus' application
till the next meeting," he said. "No one can pressure us... to sign a
document we have not negotiated with the Greek Cypriots."

Turkish Cypriot envoy Tahsin Ertugruloglu, who was in Copenhagen said the
Turkish Cypriots would refuse to sign up to a document which had not been
properly negotiated. "A scenario is being played as if the Greek Cypriots
are ready to sign and the breakthrough is becoming impossible because the
Turkish side is not signing," Ertugruloglu said. "This has nothing to do
with the reality," he said, while accusing the EU of engineering a fait
accompli to admit only the internationally recognised Greek-Cypriot
government to the bloc in the absence of a reunification deal."

Journalists gathered at the Marriot trying to get any information they
could on the developments. Most of the information came from official lips,
albeit off the record, but the situation was so fluid that things changed
from one moment to the next. Any party leader or government official seen
walking in the lobby was immediately grabbed for information while
speculation was rife.

UN Cyprus envoy Alvaro de Soto called in Turkish and Greek negotiators for
last-minute talks on the margins of the summit. But there were doubts even
that Denktash's envoy was empowered to take decisions, let alone sign a
deal.

At 1pm, Clerides appeared in the lobby and was immediately surrounded by a
crowd of reporters thirsty for information. The President however remained
tight lipped and proceeded to the dining room to have lunch with the rest
of the delegation.

Meanwhile, Attorney-general Alecos Markides was sent to the conference
centre next to the foreign ministry and was reportedly engaged in hard
bargaining. But Greek Foreign Minister George Papandreou was already
doubtful for a deal. "Time is running out and negotiations haven't even
really started. So I can't say we have much of a hope," Papandreou said.

Gradually it began to sink in that there would not be any solution, at
least not during the summit.

Whatever the case, the three days in Copenhagen were probably the most
testing for the political leaderships.

Reports said there was bickering among the Cypriot political leadership,
but the most interesting piece of information, which emerged from the
Marriot, was the feeling that Clerides was not willing to sign an agreement
in Copenhagen.

The other two opponents were reportedly DIKO chief Tassos Papadopoulos and
AKEL leader Demetris Christofias. Papadopoulos maintains that there should
be further negotiation on the plan while Christofias apparently wanted to
confer with the party's political bureau before giving an answer.

But everything was over when Denktash's representative Tahsin Ertugruloglu
eventually left the conference centre declaring that "nothing had been
signed".

Shortly afterwards Markides officially declared that it was all over.

He said that during his two-and-a-half hour meeting with the participation
of the Turkish Cypriot side and the two guarantor powers, there had not
been any negotiations. "De Soto told me that after talking with Turkish
Cypriots he concluded it was impossible to have a solution of this problem
today. Therefore as far as today goes, his efforts stop here and therefore
Cyprus accedes to the EU without a settlement," said Markides as he left
the venue of the meeting.

With Copenhagen behind them, the two sides would now have to continue the
negotiations in order to meet a February 28, 2003 deadline in accordance
with the UN plan.

Turkey, one of the key players in the Cyprus problem, though disappointed
by the EU decision to let it wait two years for another review, said it
would continue to work towards finding a solution by February. "Our efforts
for achieving a solution continue and we continue to show our goodwill,"
Turkish Prime Minister Abdullah Gul said.

Concerning the Turkish Cypriots who yesterday demonstrated in favour of a
solution and EU accession, Gul said that discussions for the "accession of
the Turkish part of Cyprus do not end here". "We have until February 28;
our approach on this matter is positive.

"If we had more time to deal with the issue here, we also had a few things
to say about this.

"We will do everything to solve the problem within the framework of the UN
plan," Gul said.

TH PRICE of petrol is set to drop and the cost of diesel will rise as of
January 1, 2003, as the government moves to deregulate the fuel market in
line with EU harmonisation.

The drop in petrol prices will be significantly greater than the
corresponding diesel rise. this is possible because diesel consumption is
considerably larger and because other fuel types will become more expensive
- such as gas, which will rise to £300 per metric tonne.

The new prices will include 15 per cent VAT and are part of the first phase
of deregulating the fuel market. Up until now, fuel prices were cross-
subsidised, but the government is obliged to abolish the practice in line
with the EU acquis. The second deregulation phase will take place in July
2003, and will follow the same pattern. The government has said it plans to
fully liberalise the market by October. However, the Minister of Commerce
will still reserve the right to fix a price ceiling for a period of up to
45 days.

The government also plans to abolish fuel subsidisation for Cyprus Airways,
Eurocypria and the Electricity Authority of Cyprus.

On the downside for consumers, an additional tax of three cents per litre
of diesel will be imposed of as next year, to be followed by a further four
cent rise in October.

For the time being, regular petrol will fall to 44.1 cents from the current
49.1 cents. Diesel will rise to 26.5 from 25 cents.

The new prices will be subject to change if parliament introduces further
consumer taxes as part of EU harmonisation. Fluctuations in international
oil prices will also play a part; the current price of crude brent oil is
£15 a barrel.

The salient bill was tabled yesterday in parliament by Commerce Minister
Nicos Rolandis.

FORENSIC Pathologist and DIKO deputy Marios Matsakis had his medical
licence suspended for one year yesterday after the Cyprus Medical
Association (CMA) disciplinary committee found him guilty of medical ethics
violation charges.

The outspoken deputy appeared before the Disciplinary Board yesterday
facing accusations levelled against him by four medical colleagues who
alleged he made "insulting and offensive comments" in public following
their autopsies last year. They also claim he accused other doctors of
medical negligence on numerous occasions.

A statement by the disciplinary committee said Matsakis was found
unanimously guilty on breeching two out of four articles of the Medical
Code of Practice.

"The majority of the committee has decided to impose a one-year medical
licence suspension," the statement said.

According to the statement, the committee based its ruling on "the serious
consequences Matsakis' comments against the CMA would have on the medical
society as a whole".

The statement also said Matsakis' comments aimed to diminish the CMA's role
as the guardian of matters of dignity and prestige of the medical
profession, as well as to undermine the public's trust towards the medical
system. Matsakis was also found guilty of lack of remorse.

Speaking to the Cyprus Mail yesterday an embittered Marios Matsakis said
the Medical Association was out to destroy him.

"I am very saddened and disappointed on the committee's decision," he said.
"I am innocent, I was found guilty not for any criminal activity but for so
called unethical behaviour.

"I merely commented on the fact of the leadership of the CMA and the way
they behaved on the cases in question, not only as a doctor but as a
deputy." Matsakis said CMA feared his position as a deputy would put them
in jeopardy.

"They fear me, I am a threat to them," he said. "I am trying to change
things, but some people don't want change. They see me as a threat and they
want to stop that threat.

Matsakis said he has taken the case to the Supreme Court and that he was
waiting for a decision.

"I have some very serious justice matters against the CMA," he said. "I
have not been tried by a court, but by doctors. These people are trying to
gag me and I suspect that they will use today's ruling to try and destroy
my medical and political career."

The president of the disciplinary committee yesterday refused to comment on
Matsakis' accusations and resorted to saying should the deputy have any
disagreements with the decision, he could take his case to the Supreme
Court.

THE CENTRAL Bank of Cyprus yesterday cut lending interest rates by half a
percentage point to 5.0 per cent but decided to retain the deposit rate at
2.5 per cent.

Following a meeting of the Monetary Policy Committee a Central Bank
statement said that lower economic growth, not expected to exceed 2.0 per
cent in 2002, and a slowdown in November inflation to 2.86 per cent year-on-
year guided the decision.

Central Bank Governor Christodoulos Christodoulou said that economic
activity continued to remain low because of lower tourist arrivals and
income, a significant slowing down of retail sales and low levels of credit
expansion.

He added that the Gross Domestic Product for 2002 was not expected to
surpass two per cent while the economic recovery for 2003 remained closely
associated with international political and economic developments.

Christodoulou said the decision was not taken unanimously but with a
"tangible majority". He further said that the anticipated developments on
the Cyprus problem and the European Union's (EU) decision for Cyprus'
accession to the EU were taken into consideration, "even if some of these
have not been finally formulated".

The cut is the first by the Central Bank in 13 months. It held off lowering
interest rates in the past amid concerns of spiralling inflation fuelled by
tax increases earlier in the year.

The rise in the consumer price index, the most common inflation tracker,
peaked at 3.77 percent in September, but has eased since then from a
decline in cost of services - notably telecoms - and agricultural produce.

THOUSANDS OF Turkish Cypriots yesterday took to the streets of occupied
Nicosia calling on Rauf Denktash to resign after the Turkish Cypriot side
refused to sign the UN's settlement deal at the EU summit in Copenhagen.

Calling for Denktash to resign and "to go", the Turkish Cypriots, some
carrying banners reading "We are not Turkish. We are not Greek. We are just
Cypriots", marched to Denktash's offices clapping and chanting: "For 30
years you are telling us Mr Denktash to be patient and negotiate. Is that
what you are telling us now too?"

The gathering was organised by trade unions and people supporting the
island's accession to the EU. "For years the separatist politics of the so
called community leaders have brought our community to the brink of
extinction by refusing to act with accordance to the actual community
interests," said a written statement from the protestors said.

"Despite that, a big majority of the Turkish Cypriot community desires a
solution, peace and EU accession. These key community interests are
persistently avoided. We refuse the separatist politics, which aim to erode
the Turkish Cypriot community, applied by Mr Denktash and his accompanying
authorities. This country is ours".

Republican Turkish Party (RTP) leader Mehmet Ali Talat, who joined the
demonstrators told CyBC television that the protest was a "spontaneous
response of Turkish Cypriots to the intransigence of the Turkish side in
general.

"It is a response to them not coming to the point to agree and sign an
agreement," he said adding that he had heard news from Copenhagen of a
'goodwill agreement' signed with Greek Cypriots obliging Denktash to
continue negotiations until February 28.

Talat admitted there was a rift between Denktash and Ankara and suggested
that it was in Turkey's best interests to find a solution.

"Cyprus' accession to the EU without Turkish Cypriots would make Turkey's
EU prospects difficult."

Attorney-general Alecos Markides told reporters in Copenhagen that by not
signing a Cyprus agreement, Denktash and Ankara had once more "left the
Turkish Cypriots out in the cold". Markides made it clear that the EU
wanted a united Cyprus and that "the quicker people understood this the
quicker we will have a solution."

BANKS WOULD continue to honour transactions made Cypriot cardholders abroad,
JCC Electronic Division General Manager Takis Fekkos said yesterday. The
good news comes after banks were forced to halt all credit and debit card
usage on the island at midnight, following continued strike action at JCC
Payment Systems Ltd - the company that processes the majority of card
transactions n Cyprus. Meanwhile, tourists would be able to use automatic
teller machines (ATMs) to withdraw cash and locals would be able to use
their own branches for the same purpose, he said.

Consumers, shops, hotels and restaurants all became innocent victims at
midnight when banks were forced to stop all local credit and debit card
activity. The move came after two weeks of continued industrial action
within the JCC data centre, which brought all card transaction processing
to a standstill and blocked payment settlements.

With Christmas only 12 days away, anxious shoppers were worried they would
not be able to buy gifts and rightly so, according to Fekkos.

"The biggest problem is that people will not be able to use their credit
cards to go shopping," he said. Unless consumers ventured out with abundant
cash or chequebooks in tow they would be coming home empty handed, he said.

Local restaurants and hotels would also be affected. Only Cypriots
travelling abroad would be able to use plastic by way of making payments,
he said.

"A number of people have been very worried that they won't be able to pay
for their hotel bills or to go shopping this Christmas while they are on
holiday, but the banks have assured they will honour all (transactions made
by) Cypriot credit cards abroad," stressed Fekkos.

Tourists would also be able to withdraw cash from all ATMs and locals would
be able to withdraw cash from their local branches. This in itself could
still pose a problem if there was not enough cash to go round, he said.

"Banks will have to ensure that they have put enough money in ATMs for
people to withdraw cash. If there is a mad rush to collect money, then
there will be a problem."

Banks would also continue to process monthly wages but transfers made from
one bank to another might take longer than usual, he said.

"Arrangements are being made to bypass JCC as far as salary payments are
concerned. For example, salary deposits from the Bank of Cyprus to Hellenic
Bank accounts will still take place, they just might take slightly longer."

Unfortunately there was nothing anyone could legally do to stop the JCC
strike, which is backed by the Bank Employees Union (ETYK). It was in
violation of the industrial relations code, but had not broken any laws.

The strike started after a dispute ensued, between ETYK and the Bankers
Employers Association, when JCC re-hired an information technology
specialist, reinstating him to his previous post of deputy department
manager. ETYK appealed to the Labour Ministry, saying JCC was in violation
of collective agreements by hiring the manager without union authorisation,
and the Ministry upheld the appeal.

"When the Ministry, that acts as a mediator in industrial relations
disputes, makes a decision you don't discuss it, you merely accept it. We
disagreed with the decision, but complied," said Fekkos.

However, when JCC demoted the employee to the status of a newly appointed
member of staff, ETYK remained unhappy and decided to take strike action
for as long the employee continued to work there.

The reason the union was unhappy, according to a Bank of Cyprus source, was
because although JCC had demoted the deputy manager, ETYK feared he would
be re-promoted within several months and that there would be nothing it
could do.

"The union's secretary-general (Loizos Hadjicostis) does not act alone. He
investigates employee and union member complaints and if there is ground
for action he takes it," said the source. "It is our right to strike and
have our interests protected. I'm sure the union president knows what he is
doing and there is a reason for it."

But, according to Fekkos, fears concerning the employee's promotion leading
to subsequent strike measures were a joke.

"We are being held hostage by the Union," he said. "It is completely
illegal and has brought the economy to a complete standstill."

Fekkos said ETYK's actions were merely trying to prove a point that it "had
the muscle to do what it liked." He said it was the first time since the
industrial relations code handbook was first introduced 40 years ago that
it had been violated in this way.

"The law cannot do anything to stop ETYK. Although it has violated the
industrial relations code, this is a code of conduct and not law," he said.

Labour Minister Andreas Moushouttas and the Bankers Employers Association
condemned the strike and called for its immediate end. Moushouttas issued a
statement suggesting the practice of continuing to use this form of
gentleman's agreement needed to be re-assessed.

Hadjicostis could not be reached for comment at ETYK headquarters
yesterday.

THE BANK Employees Union (ETYK) yesterday announced it planned to continue
industrial action at JCC Payment Systems Ltd and that further strike
measures were likely.

Speaking to the Cyprus News Agency, ETYK vice-president Prodromos
Charalambous said it wanted to solve the dispute between itself and the
Bankers Employers Association.

"The Bankers Employers Association (BEA) has not mentioned that on Monday,
our President, together with JCC's president and general manager, reached
an agreement to solve our differences," he said.

"The deal was sealed with a handshake and the next morning, when they met
to implement the agreement, they (the BEA) went back on their word," said
Charalambous.

Despite Labour Minister Andreas Moushouttas' condemnation of the strike,
which is seen as a violation of the industrial relations code, Charalambous
said the Minister had "made a decision based on the other side's argument
and had not even listened to ours".

ETYK claimed yesterday that the Bankers Employers' Association had violated
standard practices and admitted it had defied collective agreements,
therefore allowing them to go ahead with strike measures.

It apologised for any inconvenience the public was forced to endure during
the holiday season, but said workers could not give up their rights because
of it.

The Bankers Employers Association was expecting people to be put out so
that the union could be blamed and pressured into backing down. "This will
never happen," stressed Charalambous.

Yesterday a two-hour strike at the Bank of Cyprus was called off at the
last minute and re-scheduled for Tuesday, he said. The strike was called as
a show of support for JCC employees.

OVER FIFTY per cent of consumers that shop at supermarkets will have to
find alternative forms of payment as of today after a halt on all credit
and debit card transactions came into effect late last night.

The decision, taken by the Cyprus Bankers Association, was a response to
the ongoing strike at the JCC electronic centre - the principal processor
of card transactions in Cyprus. Over £35 million is currently in limbo
because the company has been unable to process the money charged to credit
or debit cards since the strike began on November 27.

Meanwhile, supermarkets are preparing for an unpredictable Christmas
shopping season with the knowledge that more than half their customers use
bank cards. Although cash is still an option, storeowners are aware that
many shoppers will turn to less dependable methods of transaction, namely
the cheque.

One Nicosia supermarket owner said the strike would create big problems for
all businesses. "It will affect all jobs. Most people are unprepared
because they didn't know about the strike and don't have cash flow. I think
it's a terrible situation," said Demetris Ioannides of Ioannides Brothers
supermarket. "We have now reached the level where over 50 per cent of our
customers use bank cards to pay for their shopping," he said, adding "We
have no choice now but to not accept the use of bank cards. We will have
big problems as a result of the strike."

Athena Pilavaki-Makrina from Pilavakis supermarket in Nicosia also said the
strike would create a negative effect on business. "We depend on JCC a lot.
We will have a huge problem. The number of our customers using bank cards
to purchase goods has reached 50 per cent and over." Makrina expected a big
increase in cheques from consumers who failed to arrange cash flow to deal
with the strike. "The store will have to be very careful with cheques. They
are not as safe and secure as bank cards, even though they charge a
commission on cards," she said.

Makrina noted that the strike had left the store waiting for thousands of
pounds to be processed by the card transaction centre. "It's going to
create a big crisis," she said. Filactis Pilavakis, said it was difficult
to predict what would happen. "You don't know how the consumer will react.
If they haven't arranged cash flow, then cheques will be used. Some people
will not even be aware of the freezing of bank cards," he said.

President of the Consumers Association, Petros Markou, expressed his
sadness and concern with the fact that consumers were left without the use
of their cards during the Christmas period. "The market as a whole will be
suffering. The one month grace period given to credit card users will no
longer be available to them either." Markou called on all parties involved
in the strike to reconsider the situation which will have a knock-on effect
on both shopkeepers and consumers. "Many supermarkets use card transactions
a lot," he noted, calling on the Labour Ministry to intervene and use its
authority so the market could continue to run smoothly.

A PROMINENT doctor called for the government to halt legislation aimed at
defining different types of drug users yesterday, saying more investigation
into the matter was needed

The scientific director of the Centre for Education About Drugs and
Treatment of Drug Addicted Persons (KENTHEA), Dr Kyriakos Veresies, called
on the House Legal Committee to halt moves implementing the legislation,
which would define users and dealers depending on drug quantities found on
their person.

On Thursday the House Legal and Health Committees discussed ways in which
to regulate narcotics laws. Veresies warned the suggested legislation was
not well thought out and that the police and attorney-general's office had
not carried out a thorough investigation into the matter.

"It is not a clear-cut matter and people cannot be classed according to
figures. For instance, if a user sells drugs to other users, what does that
make him? Or, if someone is found with a lot of drugs in his possession,
which is for personal use, does that automatically make him a dealer? These
details are not defined by the suggested law."

Although Veresies was not present at the meeting, representatives from the
Anti-Drugs Council, of which he is a member, were. He said the
representatives had been forced by committee members into giving their
opinion on the matter, when it became apparent the law should not be drawn
up by politicians and law enforcers who lacked expertise in the subject.

"By trying to define the law they are undervaluing the Council's role," he
said.

"Nevertheless deputies went ahead and suggested that anyone found in
possession of 20 opium poppy plants or more, should be considered a dealer.
The Anti-Drugs Council suggested this number be limited to no more than
three plants.

"We stated that anything over five cannabis plants (should qualify someone)
as a dealer, the committee disagreed and put it down to three. People found
with 30 grams of cannabis were dealers, but the Council recommended that
people found with 10 grams and less should be classed as users."

Politicians added that if the prosecution could prove that anyone found
with less than the suggested quantities was a dealer, they would be
sentenced according to those findings. According to police, dealers can
serve up to life imprisonment, whereas if sentenced users serve a maximum
of a few years.

"This legislation is completely superficial and sloppy. In short they're
saying that if someone is found with half a gram less than the law states,
they can claim to be a user and escape standing trial on that basis, when
in essence they are dealers," said Veresies.

Defining users and dealers in this way was ridiculous, he said. "Experts
should evaluate the individual to determine whether or not he or she is a
user, how long they've been a user for and then be given a choice to stand
trial or to enter a drug-rehabilitation programme."

Moreover, no country in the world stated you could be found in possession
of plants and not be considered a dealer, he said. "Besides, the law
doesn't say how tall that plant should be. So if you've got a five metre
cannabis plant, you've got 800 cigarettes worth of marijuana, and yet
because it's only one plant and not more than that, you're not considered a
dealer."

Veresies warned that the island would soon become full of 'users' when they
were in fact dealers if this law was passed because people would soon learn
how to use it in their favour, claiming they were below the appointed
possession margin.

"It's a very delicate matter. You cannot say people found with only half a
gram are dealers because you'll end up with prisons full of users, but at
the same time you cannot give specifics amounts for dealers, unless it is a
huge drugs bust. Our goal is to help drug addicts and to protect other
people, first and foremost. This law doesn't help anyone."

THE ELECTRICITY Authority of Cyprus (EAC) trade unions have warned of
possible strike action right after the Christmas holidays if the collective
agreements signed in the summer are not immediately implemented.

EPOPAI-SEK and SIDIKEK-PEO, the two major unions representing the EAC, have
said they will postpone any measures until January, but added they expected
the Finance Ministry to honour its side of the agreement reached some five
months ago. EPOPAI's council will be holding an ad hoc meeting sometime
next week to determine its "dynamic measures."

For its part, SIDIKEK directly accused the Finance Ministry of stalling the
forwarding of the agreement to the legislature, describing the affair as a
blatant interference in free labour negotiations. The trade union said it
would take all necessary measures, including strike action, if it suspected
the ministry's prevarication was intended to renege on the agreement.

In a letter addressed to the Finance Minister yesterday, four trade unions
said that last Monday the ministry was supposed to present the budget that
took into account the collective agreements reached in June. Instead, the
letter pointed out, the Finance Ministry tried to unilaterally introduce
amendments to the agreement, in violation of labour and industry
regulations.

The unions urged the Finance Minister to take immediate action to end the
dispute before Cypriot consumers pay the price.

WELCOMING the expansion agreement, European Commission President Romano
Prodi said: "Accession of 10 new member states will bring an end to the
divisions in Europe. For the first time in history, Europe will become one
because unification is the free will of its people."

Turkey lifted its obstruction of a long-delayed agreement for the US-led
NATO alliance to assist the EU's embryonic military crisis management force,
clearing the way for Europe to run its first peacekeeping operations next
year in the Balkans.

The summit outcome means the EU land area rises by 23 per cent and
population by 20 per cent to 450 million in 2004, but its gross domestic
product will grow by only five percent. EU diplomats said the final
enlargement deal meant the EU would spend 40.8 billion euros in the 10 new
members in 2004-6, less than the bloc originally budgeted to spend on
expansion back in 1999.

The countries invited to join in May 2004 are Poland, Hungary, the Czech
Republic, Slovakia, Slovenia, Estonia, Lithuania, Latvia, Cyprus and Malta.

THE summit conclusions statement on Cyprus includes the following:

The Union recalls its willingness to accommodate the terms of a settlement
[of the Cyprus problem] in the Treaty of Accession in line with the
principles on which the EU is founded. In case of a settlement, the Council,
acting by unanimity on the basis of proposals by the Commission, shall
decide upon adaptations of the terms concerning the accession of Cyprus to
the EU with regard to the Turkish Cypriot community.

The European Council has decided that, in the absence of a settlement, the
application of the acquis to the northern part of the island shall be
suspended, until the Council decides unanimously otherwise, on the basis of
a proposal by the Commission. Meanwhile, the Council invites the Commission,
in consultation with the government of Cyprus, to consider ways of
promoting economic development of the northern part of Cyprus and bringing
it closer to the Union.

THE European Union pledged last night to open accession talks with Turkey
"without delay" if the country meets strict EU human rights and democracy
conditions in 2004, an EU official said.

The move should please Turkey, which earlier had grudgingly agreed at the
landmark EU enlargement summit to wait until December 2004 before the EU
decides whether to start negotiations. Ankara had hoped to win a firm date
for opening the talks in 2003.

"The conclusions on Turkey have been improved. We have added the words
"without delay" for the opening of accession negotiations," the official
told Reuters. Usually, a candidate country can expect to wait up to six
months before being able to begin accession talks once the European
Commission, the EUs executive, and the member states have given their green
light.

The EU encouragement for Turkey followed remarks by British Prime Minister
Tony Blair who held out some hope for Turkey when he said it might be able
to start EU entry talks before a December 2004 review date if Ankara met EU
political criteria sooner.

"If Turkey does pass those criteria, and perhaps a bit earlier, then of
course whenever those criteria are met, negotiations could be opened,"
Blair told reporters on the sidelines of the summit.

EU diplomats said it would take a unanimous decision by the enlarged 25-
member bloc to bring forward the date for Turkey set yesterday. But Blair
insisted the EU had given Turkey a firm date to start accession talks:
"Turkey would have liked an earlier date, but for 40 years Turkey has been
wanting a firm date, and this is a firm date," Blair said.

Earlier, Turkish anger over the EU decision to give the country only a
conditional date for entry talks after a review softened as yesterday wore
on, with leader Tayyip Erdogan pledging to continue to work for a 2004
start. Turkey had been demanding a firm date for talks in 2003.

"We will do our utmost to start the negotiations in 2004," Erdogan told
reporters after meeting French President Jacques Chirac and German
Chancellor Gerhard Schroeder. He played down disappointment at the EU
decision to review Turkey's candidacy in December 2004 to see if it met
strict human rights criteria, saying Ankara's reform process would continue
at the same pace.

Erdogan said the EU decision to review Turkey's progress to membership in
2004 was a success won in the face of European double standards. "Despite
everything the uncertainties have been removed and I think the point Turkey
has reached is a success," Erdogan told reporters.

But the Turkish leader said he was not impressed by the horsetrading and
deal-making at the summit. "We are not pleased by the practice of politics
displayed by the decision-making bodies of the EU. This displeasure stems
from the fact that we think that double standards do not fit with democracy
and modern values," Erdogan said.

Turkish Prime Minister Abdullah Gul also took a more moderate line after an
outburst earlier yesterday when he accused the EU of discrimination and hit
out at Chirac. Gul told a news conference in the afternoon: "We will
continue our reform process for our own people. We are not doing this for
others... we continue to want to be members of the EU."

He said he had told Chirac and Schroeder that Turkey "will prove if it
joins the EU that a Muslim country can be democratic and comfortable with
the modern world. I think the European leaders are not ignoring this."

Gul had slammed the EU decision and accused Chirac of turning the EU
against his country.

"I cannot accept the paragraph on Turkey. There is great discrimination
here," a Turkish official quoted Gul as telling British Prime Minister Tony
Blair in a phone call.

"There is an act of prejudice against us, and there needs to be great
efforts to correct this. Clear sentences and words should be put into the
draft to remove uncertainty," he quoted Gul as saying.

Apparently angered by reports of criticism by Chirac of Turkish negotiating
tactics, Gul was quoted as saying: "The real blackmail is what Chirac has
done. I am very disappointed that Chirac has influenced and directed the
meeting."

Markets and business in Ankara reacted with calm and even a glimmer of
optimism. Markets held steady, shored up by foreign buying. Stocks ended
only a shade down, and the lira even firmed despite the early angry
government reaction